Tum Finance plc - Updated Financial Analysis Summary

On 17 June 2022, Tum Finance plc (“Tum”) published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and financial position of Tum in 2022:

• Revenues are expected to increase by 3.7% to €3.66 million reflecting the contractual increases included in the lease agreements with tenants as the Group’s two main property assets – namely Zentrum Business Centre and Centre Parc Property – remain virtually fully occupied.
• In view of a marginal decline in administrative expenses, EBITDA is projected to increase by 5% to €2.83 million.
• Net finance costs are expected to ease by 1.3% to €0.68 million.
• Overall, Tum is forecasting a net profit of €1.57 million compared to €1.45 million in 2021.
• In terms of financial position, total assets are expected to increase by 2.6% to €69.7 million largely reflecting the higher amounts due from related parties to €2.79 million (31 December 2021: 1.72 million) and the higher levels of cash to €1.04 million (31 December 2021: €0.62 million). On the other hand, total debt is anticipated to decline by 1% to €22.1 million.
• In view of the 4.1% increase in the Group’s equity base to €38.9 million, the gearing ratio (calculated as total debt divided by total debt plus equity) is expected to improve to 36.3% from 37.4% as at the end of 2021. Moreover, in view of the anticipated increase in EBITDA, the interest cover is expected to climb to 4.16 times (2021: 3.91 times) whilst the net debt to EBITDA multiple is forecasted to drop to 7.5 times compared to 8.1 times in 2021.